Market power is highest when:
• Number of sellers is small
• Product is different
•Barriers to entry/exit are high
Market power is highest when: • Number of sellers is _________ (small or large) • Product...
1) If a market has a large number of small firms, no barriers to entry, and each seller’s product is identical, then sellers in the market are Group of answer choices a likely to cooperate with each other and set prices and output together b price-takers c able to earn supernormal profit in the long-run d likely to compete through advertising 2) Given the following total variable cost information for a price-taking firm, what is the maximum amount of profit...
Network goods are usually sold by (small / large) firms with a great deal of market power that allows them to set standards within their industry. Additionally, these firms with high market power can charge higher prices if the industry has (many substitutes/ low contestability). Network goods are unique in that their barriers to entry typically (are / aren't) factors such as large fixed costs or government regulations, but instead arise simply because people find more value in using a...
Which of the following is not a characteristic of a monopolistically competitive market structure? A.) Each firm must react to actions of other firms. B.) There are low barriers to entry of new firms. C.) There is a large number of independently acting small sellers. D.) All sellers sell products that are differentiated.
Which of the following is not a characteristic of oligopoly? Group of answer choices a There are a small number of sellers with large shares of the market b The actions of one seller will affect the actions of the others c Each seller produces identical goods d There are high barriers to entry
One of the defining characteristics of a perfectly competitive market is a. a small number of sellers. b. a large number of buyers and a small number of sellers. c. a similar product. d. significant advertising by firms to promote their products.
A characteristic of monopolistic competition that is not present in any other market structure is that there 1is only one seller and that seller holds a high level of market power. 2are many sellers and each produces its own version of the product. 3are a small number of sellers who have market power. 4are many sellers that produce identical products.
A characteristic of perfect competition that is not present in any other market structure is that there 1are many sellers and each produces its own version of the product. 2are a small number of sellers and at least a few of them have market power. 3is only one seller and that seller holds a high level of market power. 4are many sellers that produce identical products.
Which of the following is not a characteristic of oligopoly? Group of answer choices a The actions of one seller will affect the actions of the others b There are a small number of sellers with large shares of the market c Each seller produces a different good d There are high barriers to entry
1. Markets and competition Identical products, as well as a large number of buyers and sellers, are characteristics of a market. In such markets sellers of goods influence the prevailing market price, giving them the role of price in the market. True or False: The market for wheat does exhibit the two primary characteristics that define perfectly competitive markets True O False
a.
consumer lock-in
b. inverse demand function
c. Lerner index
d. marginal revenue product
e. market definition
f. market power
g. monopolistic competition
h. monopoly
i. network externalities
j. strong barrier to entry
k. switching costs
Firm that produces a good for which there are no close substitutes in a market that other firms are prevented from entering because of entry barriers. Market consisting of a large number of firms selling a differentiated product with low barriers to entry. The...